The economic friction between the U.S. and China just reached a boiling point. Last month, the U.S. slapped a 145% tariff on Chinese imports, and China has responded with a 125% tariff on American goods.
Billionaire hedge fund manager Bill Ackman, CEO of Pershing Square Capital Management, warned that prolonged trade tensions are pushing global companies to shift supply chains away from China—permanently.
"That cake is already baked," he wrote April 26 on X, referring to the irreversible decisions companies are making to exit China.
Tariffs Stack Up And Ships Slow Down.
Global Supply Chains Find New Homes
As companies scramble to minimize exposure, Ackman argued the longer the tariffs persist, "the more rapidly every company that has a supply chain based in China relocates it." He pointed to India, Vietnam, Mexico, and the U.S. as new manufacturing hubs for both U.S. and non-U.S. firms.
Billionaire hedge fund manager Bill Ackman, CEO of Pershing Square Capital Management, warned that prolonged trade tensions are pushing global companies to shift supply chains away from China—permanently.
"That cake is already baked," he wrote April 26 on X, referring to the irreversible decisions companies are making to exit China.
Tariffs Stack Up And Ships Slow Down.
Global Supply Chains Find New Homes
As companies scramble to minimize exposure, Ackman argued the longer the tariffs persist, "the more rapidly every company that has a supply chain based in China relocates it." He pointed to India, Vietnam, Mexico, and the U.S. as new manufacturing hubs for both U.S. and non-U.S. firms.
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